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Many Canadians are looking for a joint mortgage, on the one hand because the new mortgage rules make individual qualification more difficult and on the other hand to mitigate financial risks, not to mention that homes in Canada are just not what they were. However, is it a good idea? It turns out that there are many reasons why a joint mortgage is not necessarily a good idea. Let’s take a look at some advantages and disadvantages:

Advantage: a smaller down payment

Usually, the minimum down payment required to qualify for a mortgage is 5%. To avoid paying mortgage insurance from CMHC, you will need a 20% down payment. If you are looking to buy a house worth $ 500,000, the first installment will be very expensive. Sharing your mortgage with another person makes your first payment more accessible and your mortgage payments significantly lower.

Disadvantage: the other person decides to leave

Obtaining a common mortgage may seem very advantageous on the financial side at the outset; however, if you or the person with whom you have chosen to share the mortgage decides to leave, you may find yourself in a very difficult situation. You might not be ready to compensate for each other, which could result in an early sale, this is not your initial wish.

Benefit: increased accessibility of a mortgage

Buying a common mortgage property can also result in an increase in purchasing power in that the maximum mortgage amount increases. If you and your mortgage partner share the purchase of a new property, you can have access to a larger and better located property, and therefore a better lifestyle.

Disadvantage: one of them loses his job

It could happen that your mortgage partner loses their job, and the same thing could happen to you as well. In this situation, one of you will have to take charge of the other and when this happens, the many financial benefits of a joint mortgage begin to lose their value. Here are some relevant questions to ask yourself: How long do you have to cover other costs? When can the other person repay you? Of course, one way to reduce the risk of this happening is to jointly contribute to a savings fund, but the fact remains that the scenario mentioned above remains likely.

Advantage: Less expensive maintenance

When you share the costs of a mortgage with someone else, you also share the maintenance costs of the property you choose to buy. The mutual benefits are easy to notice: if the roof needs to be repaired, if there is a fault with the hot water tank or if the windows need to be renovated, you will be able to share the expenses. It’s easy to find comfort in the fact that you do not have to pay these maintenance costs alone.

Disadvantage: Friendships do not always last forever

The same story that always comes down to collocated friends is also about common mortgages: money can sometimes break ties of friendship and family ties. In fact, only the difference in lifestyle choices between the two can make the connection incompatible and that would be a good reason in itself to avoid a financial transaction like this. Be very careful when choosing your mortgage partner because the financial consequences can be very serious if things do not go according to plan.

A final important point: although there is no denying the attraction of sharing the high costs of a mortgage or house with a close friend or spouse, putting both names on the mortgage and the property may have other undesirable effects. For example, if you are both attached to a mortgage, you will have trouble qualifying for another mortgage (individually or collectively) if you choose to buy another property in the future. If any of you can avoid legal interleaving, you will have easier access to approval of future loans.

When the time comes, a series of decisions that involve many aspects of personal life behind them. It is about retirement, that moment that has come after hard years of work and service in the public and private sector.

When talking about the public sector there are different schemes for retirement, including a pension. In this article we will review some of the main features of this retirement method and, of course, we will find out if it is possible or not to have a pension granted by the Mexican Institute of Social Security along with a pension given by the Institute of Social Security and Services of the State Workers (ISSSTE). First of all, it is convenient to know what a pension is .

In this case, both the IMSS and the ISSSTE define this as an economic benefit that is intended to protect workers when they have an accident at work, suffer from an illness or a non-work accident or when they reach 60 years of age. Here we will talk about pensions that are intended to be granted in retirement, that is, when they turn 60.

It is important to clarify that, in case of the death of a worker, he has the possibility of leaving a pension to his family members who in this case are known as beneficiaries and who may be children, wife or husband, or in any case, the parents.

The granting of any type of pension is based on the delivery of a resolution that supports the right to payment of a monthly amount and the medical service provided by both the IMSS and the ISSSTE.

The types of pensions of the IMSS

First, we will talk about the type of pensions granted by the IMSS. The Social Security law establishes two regimes by which insured persons can retire. The manner in which these two procedures are determined is established through the date of beginning of contribution to the Insurance and is determined in persons who began their work before July 1, 1997, this is known as the “1973 Regime”; or if they started trading after July 1, 1997, the “1997 Regime”.

All workers in the private sector have a guaranteed minimum pension in case they have not made voluntary contributions or affiliations to an insurer. In this case, the minimum guaranteed pension is that which the federal government insures to pensioners under the Social Security Law and its monthly amount is the equivalent of a general minimum wage in Mexico City. Likewise, this amount is updated annually in the month of February according to the National Consumer Price Index (INPC) published by the National Institute of Statistics and Geography (INEGI).

When a social security worker has chosen to choose an insurance company as the accumulator of the balance in the individual account administered by its Retirement Fund Manager (AFORE), this pension is defined as the annuity pension. In our article All you need to know about the IMSS pension types , you can find out more about this topic.

The types of pensions in the ISSSTE

The differences between the pensions granted by the IMSS and the ISSSTE are minimal. However, each of them has aspects that are important to take into account. As we established, an insured of the IMSS will receive his pension from the services he provided to private sector companies.

A worker who did the same for government agencies will receive a pension from the ISSSTE. In this institution, since 2007, active workers had the possibility to choose between two different schemes for the granting of their pension.

The first of these modalities is known as “Tenth transitional” and applies to workers who were working as of March 31, 2007 and elected, and for workers who were working on that same date, but did not exercise their right to choose.

The compensations for the tenth transitional period consist of a calculation in the years worked and the average of the base salary quoted during the last year worked before retirement. As in the IMSS, the guaranteed minimum pension to be granted is equivalent to a minimum monthly salary in Mexico City.

On the other hand, the other regime promoted by the ISSSTE is known as “Ordinary Regime (individual account). Here, the amount allocated to each worker corresponds to the resources accumulated by him in his individual account for all the years worked, his amount is determined at the time of retirement based on the contributions that have been made up to the last day worked. The pensions are granted by the ISSSTE and the worker chooses the payment method through an insurer or an AFORE.

This regime is applied to the workers who were working as of March 31, 2007 and who elected them, and to those workers who were not working as of March 31 and who joined or re-entered to contribute to the ISSSTE as of April 1, 2007. that same year.

As in the IMSS there are different conditions to receive the pension, in the ISSSTE there are also. Some of the main ones that interest us most in this article are the following. In the Individual Account System, workers who have paid or worked for 25 years and have just turned 60 can retire.

This modality is known as Unemployment in advanced age. The other very similar modality, but with 65 years of age is known as Old Age. On the other hand, in the regime of the tenth transition, the Retirement corresponds to men who have worked for 30 years and women who have done so for 28 years, have met a minimum of 58 years in the case of men and 51 years in the case Women’s.

To this regime is also added the modality known as “Age and time of services” for people who have worked for 15 years or more in the sector and who have turned 58 years old. There is also unemployment in old age when you have worked for 10 years and the worker turned 63 years.

You should know that as a pensioner of the ISSSTE, you enjoy a series of very important rights. You can meet them in our article: Know the rights of the Retirees and Pensioners of the ISSSTE , do not stop reading it.

And then can you have a pension from the imss and the issste?

Is it possible to have and collect a pension when the IMSS and the ISSSTE have been quoted? The answer is yes. In terms of pensions, in 2009 both institutions signed a portability agreement whose purpose is to demonstrate that the right to an economic benefit is associated to the person and not to the type of employer who uses it, so that, if in your career You decided to go from the public to the private sector, your effort has counted equally. Processing your pension in these two modalities is simple.

If you wish to retire by retirement, unemployment in advanced age, old age or retirement, under the modality of portability of rights the only thing you must do is process and obtain, before requesting your pension, the record of periods recognized by both Institutes for the work done in both sectors.

It is important to highlight that the application to start the processing of your pension must be submitted at the last institution to which you have contributed or in which the most recent withdrawal is recorded. In both cases, for that special date, you must already be discharged as a worker.

Thanks to the Internet, both the IMSS and the ISSSTE have made available to their insured special tools to know their type of pension or the weeks they have quoted in one or both institutions. Surely at this point you have everything under control or you are ready to say goodbye and start new projects. Congratulations! You have reached a great stage in your life.

You could say that we all have the interest to save, however, at the end of the month we do not know where our money was and we did not save the amounts we wanted.

Saving without a doubt is a difficult challenge, since low wages have not increased in the same way as the prices of products and services have. But make it a difficult challenge, it does not make it impossible. There are many expenses that we can cut, without our lifestyle changing too much, for example: spending ant. Do you know how much money is going to you in those small and unnecessary expenses that you do not give importance to but that, added, do affect your portfolio?

Ant spending

Ant expenses are derived from unnecessary purchases that go unnoticed for different reasons. Normally, we give greater importance to the most significant purchases and expenses, than to the small expenses, because when disbursing 20 or 30 pesos, we do not believe that it affects our economy, but what happens if we add up all those expenses each month?

They represent 12% of our income, according to the Condusef. The 12%! It is more than 10% that it is recommended to allocate food or education expenses monthly. At the end of the month, the ant expenditure turns out to be significant.

What unnecessary expenses do Mexicans have?

Some of them are coffee, sweets, cookies, chips, cigars, beers, bottles of water, tips, commissions in shops, etc. So, assuming that a person has an income of $ 10,000 per month, these ant expenses would represent about $ 1,200 per month and about $ 14,400 per year.

Now let’s think how much do we save for an unforeseen event or for an emergency fund? How much money are we saving for our retirement? How much money do we need to meet personal goals? If the answer is very little or nothing, then it is time to find what our ant expenses are and cut them out or eliminate them.

Find your savings opportunities

The expenses ant are different for each person, that is to say, there are small expenses that while for some they are unnecessary, for others yes they influence in their way of life. Therefore, it is up to each person to find out what are the small and unnecessary expenses that we do not give importance to, but which, added together, are preventing us from achieving bigger things.

There are expenses that are more complicated to eliminate, but you can find ways to reduce them. An example is subscriptions to services such as Netflix or Spotify. The monthly subscription for a person of these services costs $ 109 and $ 99 per month, respectively. This represents an annual expense of $ 2,496. If you hire the Netflix Premium Plan for four screens, which costs $ 199 per month and you share it with three other people, and you hire Spotify for yourself and up to 5 friends or relatives, which costs $ 149 per month; your annual expense would be $ 895. You would be saving $ 1,601 a year!

Sharing some expenses is a great way to save money while still using certain products or services.

It is important to know these data to organize and plan your personal finances. In just 4 steps you can start converting your ant expenses into savings and a good idea is to rely on fintech, or financial technologies, both to make a budget and to make your money work through investments.

4steps to reduce your ant spending and increase your savings

1. Identify the total amount of money you receive per month andestablish the essential needs.

For this, in Finerio we recommend the 50/30/20 rule.

The rule says that you must allocate 50% of your income to basic needs such as rent, food, services and transportation. 30% can be for lifestyle and entertainment expenses. 20% should be used for savings. In this way, you will see that it is easier to organize and plan your expenses with the money you have available. If you have spare, always save it.

2. Make a budget and implement the 50/20/30 rule.

Calculate everything you spend in the month, the more specific your budget, the better because you will avoid unnecessary expenses. Having a budget does not mean quitting going out and eating the same thing every day. It means establishing your priorities and adjusting some expenses according to your needs.

We know that sometimes it is tedious to make a budget, but with Finerio you can do it in a simple way and track your expenses in an automated way. You can link your bank cards and have all your information in the same place.

3. Take courses or research personal finance.

Financial education is essential to achieve much with little, if necessary. An education of this type will allow you to choose the financial instruments appropriate to your needs.

It is important that you inform yourself about the investment instruments that exist in the market, so that you choose the most suitable one for you and you can grow the money you save by eliminating your ant spending.

4. Invest.

Once you have organized your expenses and know the financial instruments that exist to improve your finances, start investing. Neither should you be an expert, opening an investment account is as simple as opening a savings account. You just have to inform yourself to make the best decision.

Currently, digital investment platforms have more accessible processes than those of a bank and generate better returns. You can start investing from $ 100. That’s right, that money that you will save on sharing Netflix and Spotify, you can put it to work now.

Finally, order your financial priorities and create a budget based on the Fintech. Say goodbye to unnecessary expenses and you can save even more than $ 15,000 a year, if you take advantage of the investment instruments. With it you will fulfill goals that you thought were difficult to reach. You just need a little effort and be constant. Leave us your comments and tell us what ant spending you can eliminate from today?

It is ranked as the fifth country that receives the most funds from the EU28 after Germany, the United Kingdom, France and the Netherlands

Spain has obtained 553.3 million euros in the first 73 calls submitted for the European research and innovation program, Horizon 2020 (2014-2020). This figure represents 9.5% of the resources granted in competitive competition so far, which places Spain as the fifth recipient of EU aid28 after Germany (17.7%), United Kingdom (16.4%), France (11.6%) and Holland (9.6%).

The Spanish entities -universities, organisms and research centers, companies, technology centers or foundations- have obtained funding to participate in 943 R + D + i activities. In addition, 101 projects (15.7% of the EU28) will be led by Spanish institutions, which is very beneficial because it allows greater returns and a better strategic positioning to generate knowledge.

In the VII Framework Program (2007-2013), Spain, with an 8.3% return, came close to compensating its contribution to the EU budget (8.9%), occupying the sixth place in the EU28. And for the first time a large number of projects were led (10.5%).

The Secretary of State for R & D & I, Carmen Vela, stressed that the data from both programs “reflect the quality of the Spanish system of science, technology and innovation. For Horizon 2020, we had set a goal of 9.5% return and 10.5% of projects led; for the moment we comply with a note. Our participation curve in Europe in recent years is clearly upward. ” Vela also recognized the important role that the Center for Industrial Technological Development (CDTI), the European Office and other agents and structures that work to enhance the Spanish presence in European R & D & I programs have in these results. Areas

In Health, an important area with a large endowment, Spain has gone from obtaining 5.5% of the European funds of the VII Framework Program to the current 9% (51 M €); Energy continues to improve and goes from 11% of the previous program to the current 13.1%, being the second country by return. In Nanotechnology, Materials and Manufacturing (from 11.1% to 15.2%) or in Space (from 8.1% to 11.2%) the jump has also been important. Regarding the SME Instrument, very important in Horizon 2020, Spain appears as the second country by return (13.3%). The European Research Council (ERC for its acronym in English) has also increased its aid to Spain. In 2014, Spanish institutions achieved 22 Starting Grants (for the 14 of 2013) and 32 Consolidator Grants (for the 20 of 2013). The Advanced Grants are missing. Entities

Spanish companies are still the ones that bring more resources from Europe, with 33% of the total, while universities get 23.4%. As for the entities that have obtained the most projects, the Higher Council for Scientific Research (CSIC) stands out, with 71 projects of which 36 leads, followed by the Tecnalia Research and Innovation Foundation, with 45 projects and 7 led, and Pompeu Fabra University, with 21 projects and 13 led.

The term “lying loan” has become synonymous with the housing bubble and the collapse of the market in the 2000s. And although we would like to believe that these loans do not exist in Canada, the reality is different. So, what is a “lie loan”? How does this affect the Canadian economy? And why would anyone want to get this kind of loan? The next reading will give you answers.

What is a “lie loan”?

A lie loan is when either the borrower, the loan broker or the lender lies about the potential income of the borrower. This is a “lie loan” because someone lied. Contrary to what you might think, some mortgages do not require a lot of checking. These are loans with little or no documentation required. The borrower’s approval is based primarily on his credit rating and payment history. Since these loans do not require much documentation, people take advantage of this and exaggerate their current income.

Potential borrowers lie about their real income and the amount of property they own in order to get bigger loans and buy the house that they otherwise would not have bought. In addition, it is known that lenders and loan brokers often overlook these differences (between reality and lies) in order to obtain their commissions.

Loan based on your income

Any mortgage that is solely based on your income (loan with little or no documentation) are false loans. Because of their lack of verification, these loans often allow false loans to be approved.

In this kind of loan, the borrower is only asked to provide his income which, worse still, is not even verified. This opens the door for abusive borrowers who will lie about their income in order to get an even bigger amount.

Ready with little or no documentation

Be aware, however, that not all loans with little or no documentation are false loans. In the case of lying loans, the lender will sometimes not even ask for income or property in the hands of the borrower.

Why would a borrower want a lie loan?

After this reading, you may be wondering why would someone want to have a lie loan? Although everyone has their reasons, the majority of people do so to be able to buy a more expensive home or to buy what they want but can not normally afford. However, some trends can be observed:

The borrower does not have enough income to buy the house he wants

The borrower tries to hide his real income from his spouse or the government

It is in the interest of the borrower to lie in order to obtain better repayment terms

Long-term consequences

There are several reasons why no one should opt for these loans, but the most important reason is the long-term consequences. When someone is lying on his income in order to get a loan that he / she can not really afford, he / she makes a bet with the future, an uncertain and unpredictable future.

A job loss, health problem or any other emergency can prevent you from repaying the loan in the future. Once this happens, the person realizes the size of his loan and can not pay it.

People are often advised to refinance their mortgage in the future. But what happens when these people make important financial decisions in the hope that they will be able to refinance their mortgage or use the residual value to repay the debt? Imagine that the real estate market is falling and the house is not even worth the price of its purchase.

As a result, the real estate market is becoming a mess, thousands of people are no longer paying off their mortgages and more people are left with more loans and fewer resources to pay them back.

The current risk

In 2015, the Bank of Canada made it clear that the biggest risk to the Canadian economy is growing household debt. One thing we can be sure of is that the future is unpredictable, especially for those who rely too much on credit.

As most of us already know, Canadian students are constantly reminded of the privilege of being able to benefit from world-class, low-cost education. Without a doubt, compared to our neighbors to the south, the United States, the cost of education in Canada is largely subsidized by the Canadian government. Nevertheless, that does not mean that education is free or even affordable for many Canadians.

In fact, according to Statistics Canada, about 50% of Bachelors, 44% of Master’s students and 41% of PhD students use some form of student loan to pay for their studies. Many will argue that the debt required to pay for education is much lower in Canada than elsewhere. Honestly, the average amount of student debt accumulated on graduation is $ 28,000. The reality is that by completing a 1st or 2nd cycle program, most students will spend the first year of their full-time job paying off their debt. In addition, the majority of these students can not afford to participate in unpaid internships (which often provide rewarding work experience), thus finding themselves underemployed in a field other than that of their studies, largely because of their lack of experience or simply to find a job as quickly as possible.

Before you want to complete a degree, understanding the current situation of these students is essential in order to organize and prepare your finances. This article will give you an overview of everything you need to know about the government’s loan program and the Canadian stock exchange program.

Canada Student Loans Program (CSLP)

What is the CSLP?

The CSLP is a program available to all Canadians, except in Quebec, Nunavut and the Northwest Territories, which require a student loan. In short, loans are given on a basis according to the financial needs; the Canadian government pays the interest on the loan to the financial institution until graduation. In 2013-2014, almost half a million loans were given to full-time students in need.

Why the CSLP?

These loans do not require repayment until 6 months after graduation and interest begins only once graduated. The program offers students either a fixed interest rate at a prime rate of + 5% or a variable rate at a prime rate of + 2.5%. The prime rate for a student loan is the average of the rates for Canada’s top 5 financial institutions (after removing the highest rate and the lowest rate). Thus, this plan is the most sensible way to avoid a huge accumulation of post-graduation debts. In other words, a quick and safe way to invest for yourself.

What are the requirements

To be eligible for this program, you must be at least a permanent resident of Canada (in one of the participating provinces). You must be enrolled in a post-secondary institution. For a part-time student loan, you must be enrolled in at least 20% of the total course load. For a full-time student loan, you must be enrolled in at least 60% of the total course load. If you are 22 years old or older, you must make a credit assessment. You will need to fill out a loan application form and will need to provide some documents. You can validate this information and find the necessary form on the Government of Canada website.

Recall

Loans for Canadian students are limited. In fact, students in cycle 1 can receive assistance without interest only up to 340 weeks and for a period of 400 weeks for students of 2nd cycle. Once these times are up, interest on the loan will accumulate and payments will be requested. Before applying for a student loan, it is important to anticipate the number of years of study required to complete a program. Sometimes, waiting to reach a certain level will be more profitable and affordable.

Refund the CSLP

As mentioned above, the first payment of a student loan is only required 6 months after graduation. The interest is however effective as soon as the graduation. The payment method may vary depending on the repayment structure established with the loan provider. On the other hand, a monthly payment is usually the most common form. In addition, if you are in a precarious situation financially, the Canadian government also proposes a repayment plan for those who need it.

Without a doubt, being organized is the best way to control your finances so you can enjoy peace of mind by investing in your future.

Canadian Studies Bursaries

What is it about ?

This program offers many Canadian students a grant based on financial need; income and family size are the main factors that determine the amount awarded to students. Generally, bursaries are calculated as follows: $ 250 per month of study for students from low-income families and $ 100 per month of study for students from middle-income families. In addition, for students with disabilities or students with children, the program offers different scholarships as needed. In 2013-2014, a scholarship was awarded to approximately 368,000 students.

Why this program?

The Canadian Scholarship program does not require a refund from its recipients .

What are the requirements?

The requirements of the Canada Student Grants program are similar to those of the student loan program. Canada Student Bursaries are available for part-time or full-time students. To prove that you are in a precarious situation financially is the most important thing. If you are a student in need, do not hesitate to contact or visit the Government of Canada website and apply for the program. Investing in yourself is the first step if you want a better way of life and transforming your future.

Especially in summer, people spend a lot of money. Why is that? The summer vacation is expensive and the culinary temptations we can almost not resist in the summer. So there is an ice cream for the children or the parents treat themselves to an ice-cold cocktail. Unfortunately, these expenses also reduce the holiday fund, which is why the holiday in the fall from a financial point of view for many travel enthusiasts is no longer bracing. What can you actually do to counteract this development and to treat yourself to something during the autumn holidays? Saving in the fall can be the key to this problem. However, the basics are laid in the summer.

An autumn holiday can actually be cheap

You can do some really great activities in the fall, but you do not have to put up with any big expenses. This will save you in the fall and still be able to offer something to your family. How about a nice hike through the Bavarian Forest? Here you will find numerous appealing hotels that score with an excellent relationship between price and performance. Even in the fall, the hotels want to occupy their rooms and therefore are often presented for the autumn holiday exceptionally good deals. Saving in the fall can therefore work well in the Bavarian Forest. The beautiful landscapes make the autumn holiday unique and countless free adventure playgrounds ensure that even the youngest ones do not miss out on the autumn holidays.

Autumn holidays: Experience impressive river landscapes

Germany is the land of rivers and lakes. Water fascinates the children and saving in the fall is thus easily possible. Why do not you decide for an autumn holiday at the campsite during the autumn holidays? The rents are compared to the hotel accommodation very low and the whole family will be thrilled by this venture. A camping holiday in the autumn holidays welds together and it is shown that saving in the fall can certainly be associated with unforgettable experiences. You can prepare your own meals during the autumn holidays at the campsite and save a lot of money.

Saving in the fall is possible without any problems

If you decide on cheap activities during your autumn vacation, then you must not miss the fun. On the contrary, because often the most beautiful autumn vacation. Just try it out and experience great adventures in the middle of nature in the fall. With beautiful walks or an exciting camping holiday, the whole family gets their money and the common activities are the focus. In this country you are offered many opportunities for this unforgettable autumn holiday and you should definitely use this.

Do you save a lot of money in the fall and still can not go on the autumn vacation? Then there is another solution. A short-term online loan from Nora Helmer fills up your vacation fund and you can enjoy the fall to the fullest. The online loan from Nora Helmer is fast on the account – with the XpressService you get the money within 24 hours. All you have to do is select the loan amount and the term, then complete the loan application and in 60 seconds you will receive the credit decision. The online loan is a great way to supplement your travel budget and enjoy the fall.

During May, the selected companies were announced to move to Phase II of the SME Instrument . Among the selected one of the projects presented by INBIOTIC-ESMEDAGRO . The development project of a novel bio-fungicide is framed in the topic of Food Security and Sustainability .

A total of 161 PYMES from 23 countries have been selected in Phase I. Each project receives an economic endowment of € 50,000 to develop the feasibility studies of the project and have three days of business coaching.

Of the 1569 proposals received in phase I on March 18, 2015, only 151 have been selected to move to phase II. The country with the most representatives is Spain with 34, followed by Italy with 25 and the United Kingdom 18.

Beneficiaries by countries

On the other hand, the Center for Industrial Technological Development (CDTI) presented last week the results of projects approved in its last Board of Directors. € 50 million in 81 business R & D & i projects. In total these projects generate 793 jobs, mostly highly qualified.

Of the 81 projects in which 84 companies participate, 65.5% are SMEs, of which 34.5% belong to high technology sectors and receive CDTI funding for the first time.

Among the 62 individual R & D projects approved there are two projects presented by INBIOTIC-ESMEDAGRO , with a total budget of 941 thousand euros. These have a non-refundable Tranche of 20% and 85% CDTI financing.

Unlike other insurances, in which we cover contingencies that revert to ourselves, be it our health, a blow to the car or a loss in our home, in Life Insurance, we do it essentially thinking of others, in the economic protection of those we love most. For all these reasons, a figure of the beneficiary , the person in whom in the event of death he will receive the economic benefit stipulated in the insurance contract, acquires special importance.

The express choice of the same brings advantages and facilities in many cases at the time of collection, but the issue is that there is no such obligation and therefore in many cases at the time of death we can find that there is no designated beneficiary. If so, in case of death, the amount of life insurance will be received by the legal heirs of the insured person .

If on the opposite side, there is express designation of the beneficiary, in this case the law provides for two ways of doing so, either in the policy itself or this express designation can be made in the will.

Rights and obligations of the beneficiaries

The fundamental right of the beneficiary of life insurance is the collection of the economic benefit agreed in the policy, but also has a series of obligations before receiving this perception.

To receive it, you must identify yourself to the insurance company. If you are listed as a beneficiary expressly in the policy, you will not have any problem, if not, you will have an additional procedure, submit the corresponding designation of heirs made before a Notary, either because there is a will or because they are legally established after applying for a certificate. Acts of Last Will. This document certifies if a person has given a will (may have made several, the most important being the last one that annuls the previous ones) and before which Notary or Notaries. In this way, the heirs may go to the authorizing Notary of the last testament and obtain an authorized copy thereof and with it perform any inheritance act such as the collection of life insurance.

The next step is to liquidate the taxes that entail the collection of life insurance. The perception of money by the beneficiaries of life insurance as a consequence of the death of the insured person, provided that the contractor is different from the beneficiary, is subject to the Inheritance and Donations Tax . With this, the amount received by the beneficiary must be accumulated to the value of the assets and rights that are part of his share in the inheritance. But, in order to collect the life insurance without waiting for the inheritance process, it is usual practice a partial self-assessment of the tax for the value of the policy, taking into account that the rest of the inheritance must be presented and / or self-assessed before the end of the six-month period. The insurers can not make the payment of the policy effective if it is not justified to have presented the corresponding documentation or have self-assessed the tax.

Finally, we must not forget another right, to be able to consult the existence of any insurance in order to manage its collection. In Spain there is a registry of Insurance Contracts with Death Coverage since 2005. This public register under the Ministry of Justice can find all the necessary information so that the beneficiaries of a life insurance can know if a deceased person had contracted this type of products case as well as get all the necessary information to be able to claim the insurer .